Vol 23 (2026) - Issue 1

Article preview

The UNCITRAL Model Law on Cross-Border Insolvency: Enhancing Consistency, Predictability and Convergence at a Time of Global Divergence

Synopsis
First recommended for adoption by member states by the United Nations Commission on International Trade Law ('UNCITRAL') in May 1997, the Model Law on
Cross-Border Insolvency ('Model Law') has played a significant role in the evolution of cross-border restructuring and insolvency law and policy.
The Model Law provides a core procedural framework for courts in jurisdictions – with, at times, very different substantive insolvency laws – to coordinate complex multinational restructuring and insolvency matters through a consistent, predictable and uniform recognition and relief process. This has enhanced the efficiency of insolvency systems, reduced fragmentation and conflict of law issues, improved creditor returns and opened
the door to complex multi-jurisdictional restructurings for viable entities. There have also been positive flow on impacts for credit markets, foreign investment, jobs maintenance and growth.
This has been especially important due to the advance of globalisation and trade, with companies now more integrated than ever before and having transnational operations and access to global markets and consumers in an age of advanced technological and digital capability and ongoing disruption. While beneficial in terms of economic growth, globalisation and the expansion of international commerce also lead to greater complexity in an insolvency event, which requires a principled and cohesive normative system to maximise efficiency, creditor returns and maintain enterprise value.